Sensex Tanks 585 Points, Nifty Ends Below 14600 ; IT Pack Top Drag

Indian benchmark indices in the noon trade weighed down by rising US yield fell sharply by over 2%. But later pared some losses and at the close Sensex was dragged lower by 585 pts to 49216. Earlier in the day, the index rose to a high of 50,296. Nifty also settled down by 1.1% or 163 points to 14558, dragged mainly by IT and financial stocks.

HCL Tech, Infosys, Divis Labs, Dr Reddys Labs and GAIL emerged as the top laggards in today's session, while top gainers were ITC, Bajaj Auto, Grasim, Hindalco and M&M.

Shares of Dixon Technologies after turning ex-split in the ratio of 1:5 rallied as much as 14% and hit a new high on both the exchanges.

Edelweiss Financial Services shares were locked in 5% lower circuit at Rs. 80.15 after reports suggested that the MCA has ordered inspection of the books of Edelweiss Asset Reconstruction Co (EARC).

On the rout in the US bond market wherein the US 10-year Treasury bond yield surged to as high as 1.72 per cen, the yield on 10-year government bond in India moved past the crucial psychological level of 6.2 per cent. Also, the rising coronavirus cases in the country continue to weigh down investor sentiment.

Meanwhile, at the time of writing this copy, European stocks traded mixed after the US Fed's continuing dovish stance, with FTSE down and both German DAX and French CAC trading higher.

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